Compare job offers with super salary sacrifice: what reaches your bank account

Compare job offers with super salary sacrifice

When you receive a job offer, the headline salary often looks attractive, but what really matters is the amount that lands in your bank account after tax and the Medicare levy. Understanding how super salary sacrifice fits into the picture can help you make a smarter decision between two offers.

Start with your taxable income

For the 2026–27 tax year, Australian residents pay income tax at these rates (excluding the 2% Medicare levy):

• $0 – $18,200: Nil
• $18,201 – $45,000: 15c for each $1 over $18,200
• $45,001 – $135,000: $4,020 plus 30c for each $1 over $45,000
• $135,001 – $190,000: $31,020 plus 37c for each $1 over $135,000
• $190,001 and over: $51,370 plus 45c for each $1 over $190,000

Most full-time workers also pay the Medicare levy of 2% of taxable income. If your taxable income is between $28,011 and $35,013, you pay a reduced rate (10c per $1 over the lower threshold). Above $35,013, you pay the full 2%. These are the latest published single-person thresholds from the ATO.

How super salary sacrifice changes the calculation

Salary sacrificing into super means you ask your employer to pay part of your pre-tax salary directly into your super fund. The Australian Taxation Office explains that this reduces your taxable income because the sacrificed amount is not counted as assessable income for PAYG withholding. Your super fund then taxes those contributions at 15%, which is usually lower than your marginal tax rate.

For example, if your salary is $100,000 and you salary sacrifice $10,000 into super, your taxable income drops to $90,000. You pay less income tax and Medicare levy, so your take-home pay increases compared to receiving the full $100,000 and then making an after-tax contribution. However, your bank account receives the lower gross amount, so you need to budget accordingly.

What about the super guarantee?

Your employer must still pay the 12% super guarantee on your ordinary time earnings as if no salary sacrifice existed. The sacrificed amount is an additional employer contribution, not a replacement. This is a key point from the ATO: salary sacrifice super contributions do not reduce the amount your employer calculates your super entitlement on.

Caps and limits

The concessional contributions cap for 2026–27 is $32,500. This includes your employer's super guarantee and any salary sacrifice contributions. If you exceed this cap, the excess is taxed at your marginal rate. Also, if your combined income and concessional contributions exceed $250,000, you may be liable for Division 293 tax, which adds an extra 15% on contributions above that threshold.

Comparing two job offers

To compare offers, follow these steps:

1. Calculate your taxable income after any salary sacrifice arrangement. Use the tax rates above to estimate your income tax.
2. Add the Medicare levy (2% of taxable income, adjusted for the shading thresholds if applicable).
3. Subtract the Low Income Tax Offset if your taxable income is below $66,667. The maximum offset is $700 for incomes up to $37,500, then it phases out.
4. The result is your take-home pay – the amount that reaches your bank account each pay period.

Remember that super salary sacrifice contributions are not deducted from your take-home pay; they are deducted from your gross salary before tax. So your net pay will be lower than if you didn't sacrifice, but your super balance grows faster.

Practical example

Suppose you earn $80,000 and are considering two offers:

• Offer A: $80,000 salary, no salary sacrifice.
• Offer B: $80,000 salary with an option to salary sacrifice $5,000 into super.

For Offer A, taxable income is $80,000. Tax = $4,020 + 30% of ($80,000 - $45,000) = $4,020 + $10,500 = $14,520. Medicare levy = 2% of $80,000 = $1,600. Total tax = $16,120. Take-home = $63,880.

For Offer B, taxable income is $75,000. Tax = $4,020 + 30% of ($75,000 - $45,000) = $4,020 + $9,000 = $13,020. Medicare levy = 2% of $75,000 = $1,500. Total tax = $14,520. Take-home = $60,480. The $5,000 goes to super, taxed at 15% ($750), so your super receives $4,250 net. Your bank account is $3,400 lower, but you've saved $1,600 in tax and boosted your retirement savings.

Use our tools

For a quick estimate, visit our Take-home pay guide or the Salary packaging page. You can also check the Super page for contribution limits.

Final thoughts

Super salary sacrifice is a powerful way to reduce your tax bill and build retirement savings. When comparing job offers, always look beyond the gross salary. Calculate your expected take-home pay after tax, Medicare levy, and any salary sacrifice arrangements. This gives you a true picture of what you'll have to live on each fortnight.

Remember, the figures here are estimates. For a personalised assessment, consult a tax professional or use the ATO's online tools. The key is to understand how each component affects your net pay so you can make an informed choice.